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Published: December 28, 2017

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Entrepreneurs engaged in the catering industry or the sale of food products charge VAT on food products. When calculating VAT, suppliers apply different rates determined by the legislative acts of the Tax Code of the Russian Federation (hereinafter referred to as the Tax Code of the Russian Federation).

• VAT on food products at a rate of 10%
• VAT on food products at the rate of 18%
• VAT exemption
• Application of 0% rate
• Table of products with different VAT rates
• Results

This takes into account the circumstances and conditions in which the production and sale of certain food products is carried out.

VAT on food products at a rate of 10%

Food products subject to a VAT rate of 10% are included in a special list defined by subparagraph 1 of paragraph 2 of Article 164 of the Tax Code of the Russian Federation.

To confirm this rate, it is necessary that the name of the product is contained in the All-Russian Product Classifier (OKP) - for Russian products, or the Commodity Nomenclature of Foreign Economic Activity (TN VED) - for foreign ones (letter of the Ministry of Finance of Russia dated July 4, 2012 No. 03-07-08/167 ).

To confirm the 10% rate, you need to draw up a document that will certify that the product complies with all the conditions of technical regulations.

However, there are judicial precedents considering cases of refusal to confirm this rate (Resolutions of the Federal Antimonopoly Service of the North-Western District dated 02.28.2014 No. A56-9963/2013, FAS Moscow District dated 03.13.2008 No. KA-A40/1415-08).

The tax justification and the amount of tax calculated at a rate of 10% are indicated in line 020 (columns 3 and 5, respectively) of the VAT return (order of the Federal Tax Service of Russia dated October 29, 2014 No. ММВ-7-3 / [email protected] ).

List of preferential goods under the Tax Code

According to paragraph 2 of Article 164 of the Tax Code of the Russian Federation, a VAT rate of 10% percent is applied on the sale of the following goods:

• meat, dairy products, cereals, pasta, products for children and healthy nutrition (subclause 1, clause 2);
• educational, cultural, scientific books and periodicals (published at least once a year) magazines (subclause 3, clause 2). If the volume of pages of an advertising or erotic nature in a book or magazine is more than 45%, the 10% rate does not apply. The right to a preferential rate must be confirmed by a certificate from the Ministry of Digital Development (Government Decree of January 23, 2003 No. 41, clause 2 of Decree of the President of the Russian Federation of November 20, 2022 No. 719);
• goods for children (clothes, shoes, toys) (subclause 2, clause 2);
• certain types of foreign and domestic medical goods (medicines, medical devices, with the exception of those completely exempt from VAT) (subclause 4, clause 2).

Until December 31, 2022, a VAT rate of 10% is applied to the sale of services for domestic air transportation of passengers and baggage, except for the services specified in subparagraphs 4.1 - 4.3 of paragraph 1 of Article 164 of the Tax Code of the Russian Federation.

However, in order to apply a preferential rate, simply assigning a product to this general list is not enough. After all, each product has its own name and characteristics, and which specific goods fall under the preferential VAT rate are not specified in Article 164 of the Tax Code of the Russian Federation. This is just a brief general description of the benefit items.

Therefore, it clarifies that in order to apply the VAT rate of 10%, the government determines lists of product codes according to OKPD and TN VED for the types of products specified in the Tax Code of the Russian Federation.

VAT on food products at the rate of 18%

For other food products not included in the list of clause 2 of Article 164 of the Tax Code of the Russian Federation, a rate of 18% is assigned (clause 3 of Article 164 of the Tax Code of the Russian Federation). The same rate is assigned in circumstances where the supplier cannot document the right to set a 10% rate.

When drawing up a VAT return, the amounts received from the sale of food products at a rate of 18%, and the VAT itself, are reflected in section 3 (line 010, in columns 3 and 5).

Government resolution on the VAT tax rate of 10%

As we have already mentioned, the reduced VAT rate applies only to those household goods whose codes according to the OKPD or the Commodity Code of Foreign Economic Activity of the EAEU are mentioned in special lists of the Cabinet of Ministers of the Russian Federation (clause 2 of Article 164 of the Tax Code of the Russian Federation).

Moreover, it does not matter in which list you found the product: in OKPD2 or the EAEU HS. In both cases, you can use a preferential rate.

It is important that you find the code in at least one of the lists (clause 20 of the Resolution of the Plenum of the Supreme Arbitration Court of the Russian Federation dated May 30, 2014 No. 33, letter of the Ministry of Finance of the Russian Federation dated May 6, 2019 No. 03-07-14/32743, Federal Tax Service of the Russian Federation dated March 22, 2017 No. SD-4-3/ [email protected] ).

When importing, a 10% rate can be applied only if the code of the imported product is in the list with codes according to the EAEU Commodity Nomenclature for Foreign Economic Activity. If a product code is mentioned only in the list with OKPD2 codes, the 10% rate cannot be applied to it.

This conclusion was reached by the Supreme Court of the Russian Federation in a situation where the product code was excluded from the list with codes according to the Commodity Nomenclature of Foreign Economic Activity of the EAEU, but remained in the list with codes according to OKP (OKPD2). This conclusion was made in the Ruling of the Supreme Court of the Russian Federation dated March 14, 2019 No. 305-KG18-19119 in case No. A41-88886/2017, which was published in the letter of the Ministry of Finance of the Russian Federation dated April 11, 2019 No. 03-07-07/25566.

The financial department also agreed that a preferential rate is applied to imported goods if the name of the declared goods and the EAEU HS code by which it is classified correspond to the EAEU HS code and name indicated in the list (letter of the Ministry of Finance of the Russian Federation dated December 30, 2020 No. 03- 07-07/116034, dated 04/07/2020 No. 03-07-07/27433, dated 04/30/2019 No. 03-07-07/31880).

So, check the product on the following government lists:

• Decree of the Government of the Russian Federation dated January 23, 2003 No. 41 “On the list of types of periodicals and book products related to education, science and culture, subject to value added tax on their sale at a rate of 10 percent”;
• Decree of the Government of the Russian Federation of September 15, 2008 No. 688 “On approval of lists of codes of medical goods subject to value added tax at a tax rate of 10 percent”;
• Decree of the Government of the Russian Federation dated December 31, 2004 No. 908 “On approval of lists of codes for types of food products and goods for children subject to value added tax at a tax rate of 10 percent.”

VAT exemption

According to the provisions of the Tax Code of the Russian Federation, an exemption from VAT is applied when food products are made or sold in food outlets of educational and medical organizations.

This act is enshrined in subparagraph 5 of paragraph 2 of Article 149 of the Tax Code of the Russian Federation. To confirm this fact, the responsible person must present evidence or certificates that authorize the provision of medical or educational services (letter of the Ministry of Finance of the Russian Federation dated December 3, 2014 No. 03-07-15/61906).

The price of food products exempt from VAT is determined by code 1010232, section 7 of the VAT return.

If the production or sale of food products is subject to the simplified taxation system (STS), then VAT is also not charged. This norm is enshrined in the provisions of paragraph 2 of Article 346.11 of the Tax Code of the Russian Federation.

It becomes invalid in circumstances where food products are supplied to the Russian Federation, or the organization using the simplified tax system is an agent.

If an organization operates within the framework of UTII, then, according to paragraph 4 of Article 346.26 of the Tax Code of the Russian Federation, it is exempt from VAT charges. However, in this case it is necessary to comply with the requirements of subparagraphs 6–9 of paragraph 2 of Article 346.26.

List of goods subject to VAT at a rate of 10% in 2022

DairyNews has published a list of goods subject to VAT at a rate of 10% in 2022.

Last summer, the President of the Russian Federation signed a law increasing the basic VAT rate from 18% to 20%. At the same time, the existing VAT benefits in the form of an exemption from this tax are retained, as well as a reduced VAT rate of 10%, which applies to social goods (services), some food products, etc.

According to Consultant Plus, 10% VAT is applied on sales of the following categories:

• food products that are listed in paragraphs. 1 item 2 art. 164 Tax Code of the Russian Federation;
• products for children listed in paragraphs. 2 p. 2 art. 164 Tax Code of the Russian Federation. These include, but are not limited to, children's clothing and shoes, children's beds and mattresses, toys;
• periodicals and books related to education, science and culture. Periodical printed publications include any publications with a permanent name and current number that are published once a year or more often (newspapers, magazines, almanacs, bulletins, etc.) (clause 3, clause 2, article 164 of the Tax Code of the Russian Federation). In this case, to confirm the VAT rate of 10%, you must have a certificate issued by Rospechat (clause 2 of the Notes to the List of types of periodicals and book products, approved by Decree of the Government of the Russian Federation of January 23, 2003 N 41).

The list of medical goods that are subject to VAT at a rate of 10% is specified in paragraphs. 4 paragraphs 2 art. 164 Tax Code of the Russian Federation. These are goods of both domestic and foreign production:

• medicines (including medicines manufactured by pharmacy organizations);
• medical products (except those exempt from VAT).

Despite the fact that social food products are subject to a preferential VAT rate, there are a lot of non-tax factors that can increase consumer food prices.

A 10% VAT rate is applied according to current documents when selling the following food products:

1. livestock and poultry in live weight; meat and meat products (with the exception of delicacies: tenderloins, veal, tongues, sausages - raw smoked premium, raw smoked semi-dry premium, dry-cured, stuffed premium; smoked pork, lamb, beef, veal, poultry - balyk, carbonate, necks, hams, pastrami, sirloin; baked pork and beef; canned food - ham, bacon, carbonade and jellied tongue);
2. milk and dairy products (including ice cream produced on their basis, with the exception of ice cream produced on a fruit and berry basis, fruit and edible ice);
3. eggs and egg products; vegetable oil; margarine, special-purpose fats, including cooking, confectionery, baking fats, milk fat substitutes, equivalents, improvers and substitutes for cocoa butter, spreads, melted mixtures;
4. sugar, including raw sugar; salts;
5. grain, mixed feed, feed mixtures, grain waste; oil seeds and products of their processing (meal(s), cake);
6. bread and bakery products (including butter, crackers and bagels), cereals, flour, pasta;
7. live fish (with the exception of valuable species: white fish, Baltic and Far Eastern salmon, sturgeon (beluga, bester, sturgeon, stellate sturgeon, sterlet), salmon, trout (except sea trout), nelma, chum salmon, chinook salmon, coho salmon, muksun, omul, whitefish Siberian and Amur, chir);
8. seafood and fish products, including chilled, frozen and other types of processed fish, herring, canned food and preserves (with the exception of delicacies: sturgeon and salmon caviar; white fish, Baltic salmon, sturgeon fish - beluga, bester, sturgeon, stellate sturgeon, sterlet ; salmon; backs and sides of cold-salted nelma; chum salmon and chinook lightly salted, medium-salted and salted salmon; backs of chum salmon, chinook salmon and cold-salted coho salmon, sides of chum salmon and cold-salted chinook salmon; backs of muksun, omul, Siberian and Amur whitefish, cold-smoked chira; preserved fillets - slices of Baltic salmon and Far Eastern salmon; crab meat and sets of individual boiled-frozen crab limbs; lobsters);
9. baby and diabetic food products;
10. vegetables (including potatoes).

Application of 0% rate

When food products are sold abroad, it is possible to set a rate (clause 1 of Article 164 of the Tax Code of the Russian Federation). To confirm this fact, after 180 days from the time of customs registration, you must present the following documents:

• copies of agreements with counterparties;
• copies of accompanying or transport invoices;
• a copy of the customs certificate.

If copies of shipping or transport invoices, as well as customs certificates are not available in paper form, then from October 1, 2015, you can provide their registers, including in electronic format (clause 15 of Article 165 of the Tax Code of the Russian Federation, clause 10 of Article 1 of Law dated December 29, 2014 No. 452- Federal Law “On Amendments to Article 165 of the Tax Code of the Russian Federation”).

, section 4 must be completed in the VAT report

If the deadline for providing the mandatory package of papers is delayed, VAT is established at a rate of 18%. When preparing a VAT return with Section 6 completed, a rate of 10% may be assigned.

A preliminary agreement for the purchase and sale of a house and a plot of land is intended to formalize the agreement on paper. Are you planning to buy a house with land with a mortgage? You will find a description of the programs of banks that offer this service here.

When can they refuse to provide a land plot? We talked about this in detail in our article.

VAT at zero rate

A 0% rate is applied when calculating the taxable amount for goods that are subject to export outside the customs territory of the Russian Federation (clause 1 of Article 164 of the Tax Code). Of course, payers must also justify the use of such a value added tax rate. To do this, they are given a period of 180 calendar days.

You must provide a package of documents to the tax authority at the place of registration, which includes copies of:

• agreements with counterparties;
• documents on the basis of which the release, transportation and maintenance of goods is carried out;
• customs declarations.

If payers are unable to provide accompanying documents for goods in paper form, the law gives them the right to carry out this procedure electronically. Business entities received such permission after the adoption of Law No. 452-FZ dated December 29, 2014, which amended Article 165 of the Tax Code.

In the case of electronic confirmation of the origin of goods, payers must fill out section 4 of the value added tax declaration. Failure to comply with the deadlines for confirming the zero rate forces business entities to pay tax at a rate of 10 or 20%, depending on the type of goods declared. In this case, the sixth section is completed in the VAT return.

Table of products with different VAT rates

What are the VAT rates for various goods and food products? The table below will help you navigate easily.